Further support will be provided for small businesses to expand and create jobs.
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“Corporate tax cuts will help small to medium businesses and the millions of people they employ”.
“Such policies are not a plan for jobs and growth”.
It targets multinational firms with taxable revenues of $1 billion or more and companies caught cheating are asked to pay back double what they owe plus interest.
“With cuts of $224 million forecast to global aid, bringing Australia’s contribution to its lowest-ever level, and with more than a billion dollars being spent on the detention of children and families on Nauru, the question must be asked: is Australia prioritising the rights and needs of children not only in Australia, but in our region?”
A new Australian “diverted profit tax” will tax multinationals on income they have sought to shift overseas at a penalty rate of 40 per cent – well above Australia’s existing 30 per cent company tax rate.
” We will support the lift in the threshold from $80,000 to $87,000″.
Small tax cuts and spending on health, infrastructure and education are likely to be part of Tuesday’s package.
She says the Budget measures aimed at streamlining red tape compliance will free up time for SMEs to focus on their core business.
“By acting now to carefully move towards more competitive business taxes and making inroads on bracket creep on individuals the government has given the economy a much needed shot in the arm”. This should be done by prioritising revenue raising measures to fund essential services and jobs growth, rather than by focusing narrowly on cuts to spending and unaffordable tax cuts in an election year.
It’s bad news for high income earners and people with superannuation balances of over $1.6 million, but great news for low income earners who want to contribute more to their accounts. That threshold then continues to gradually rise, until 2023 when all businesses will be taxed at 27.5%.
Now that the government has outlined their budget plan, it had us thinking, what would our budget look like for 2016/17 financial year?
It will cost the federal government $5.3 billion in lost revenue over four years from 2016-17.
‘We believe the best approach is to close or reform tax concessions that are not fit for goal, including negative gearing, capital gains tax concessions, tax breaks for superannuation, and the use of private companies and trusts to avoid tax, including shifting profits offshore.
“To start reducing the debt, you’ve got to get the deficit down”.
The Turnbull government has promised company tax cuts to stimulate investment and action to prevent middle-income earners moving into a higher tax bracket, in a budget that will launch its election campaign.
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Mr Morrison said the rates decision worked hand-in-glove with the government’s plan to reduce the company tax rate to 25 per cent over the next decade, adding an estimated $16 billion a year to the economy over the long term.
